Abdol Company, Which Has Only One Product, Has Provided the Following

question 44

Multiple Choice

Abdol Company, which has only one product, has provided the following data concerning its most recent month of operations:
-The total gross margin for the month under the absorption costing approach is:

• A) $13,000
• B) $91,800
• C) $273,000
• D) $84,500

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Definitions:

Fixed

A financial term referring to costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable

Refers to a quantity that can change or vary over time or based on certain conditions.

Period

A duration of time identified for specific accounting or financial reporting purposes.

Overapplied

A situation where the overhead allocated to products is greater than the actual overhead incurred.